Michigan-based DTE Energy says that it broke ground on a $1 billion, 1,100 megawatt (MW) natural gas-fueled power plant. The Blue Water Energy Center is expected to enter service in 2022 and will be the first fossil fired plant built by the utility since 1984.

The plant will be built by Kiewit Engineering (MI) Co., a Kiewit company. The company says it plans to spend a minimum of $200 million on Michigan-based labor and materials. GE Power will provide the major generation equipment. The plant will employ around 35 people when it enters service.

The power plant is expected to be one of the most fuel-efficient power plants in Michigan. It will run on natural gas and use combined-cycle technology that captures waste heat to produce additional electricity. The plant will be 70 percent cleaner and 40 percent more efficient than the three coal-fired plants DTE plans to retire by 2023.

DTE has announced plans to double its renewable energy capacity by 2022 to 2,000 MW.